Summers pulls out of Federal Reserve running

<p>Larry Summers has pulled out of the race to be named the head of the Federal Reserve.</p>

Former secretary of the US treasury Larry Summers has withdrawn from the race to be named the head of the Federal Reserve.

In a letter to president Barack Obama, the official, who was deemed the frontrunner by many economists, said any confirmation process from him was likely to be "acrimonious".

Analysts said his decision would leave current Federal Reserve vice-chairman Janet Yellen as the main contender to take over Ben Bernanke at the central bank.

Ms Yellen is viewed as less inclined towards the immediate scaling back of the body's key economic stimulus programme.

The dollar fell against Asian currency as markets responded to the announcement yesterday (September 15th).

President Obama said he would always be grateful to Mr Summers for his hard work and services carried out on behalf of the world's largest economy.

He added: "It was in no small part because of his expertise, wisdom and leadership that we wrestled the economy back to growth and made the kind of progress we are seeing today."

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